IDEAS home Printed from https://ideas.repec.org/p/unm/umamer/1998019.html
   My bibliography  Save this paper

Creation and Destruction of Comparative Advantage by Public Investment in the Transport Infrastructure of Transit Economies and by Environmental Taxes

Author

Listed:
  • Ziesemer, Thomas

    (MERIT)

Abstract

In this paper we show conditions under which the accumulation of public infrastructure capital over time may create the comparative advantage of the production of transport services and destroy that of the production of goods in a market equilibrium of a transit economy. We also show conditions under which it will not change comparative advantage. Moreover, we also show the conditions under which an environmental tax on pollution from transport will shift the specialization back to the production of goods. In the model used, specialization is determined by: the productivity of the sectors; the transit volume; the taxes raised for the use of roads; the world market prices of goods and transport services; and environmental taxes. Gains from trade are analysed and comparative-static properties of globalization and tax policy are discussed.

Suggested Citation

  • Ziesemer, Thomas, 1998. "Creation and Destruction of Comparative Advantage by Public Investment in the Transport Infrastructure of Transit Economies and by Environmental Taxes," Research Memorandum 019, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
  • Handle: RePEc:unm:umamer:1998019
    as

    Download full text from publisher

    File URL: https://www.merit.unu.edu/publications/rmpdf/1998/rm1998-019.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Glomm, Gerhard & Ravikumar, B., 1997. "Productive government expenditures and long-run growth," Journal of Economic Dynamics and Control, Elsevier, vol. 21(1), pages 183-204, January.
    2. Mainwaring, L, 1986. "The Theory of International Transport Costs with Tradeable Intermediate Goods," Scottish Journal of Political Economy, Scottish Economic Society, vol. 33(2), pages 111-123, May.
    3. Casas, F R, 1983. "International Trade with Produced Transport Services," Oxford Economic Papers, Oxford University Press, vol. 35(1), pages 89-109, March.
    4. Brezis, Elise S & Krugman, Paul R & Tsiddon, Daniel, 1993. "Leapfrogging in International Competition: A Theory of Cycles in National Technological Leadership," American Economic Review, American Economic Association, vol. 83(5), pages 1211-1219, December.
    5. McMillan, John, 1978. "A Dynamic Analysis of Public Intermediate Goods Supply in Open Economy," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(3), pages 665-678, October.
    6. Casas, Fran?ois R. & Choi, E. Kwan, 1989. "Transport Costs and Immiserizing Growth Under Variable Returns to Scale," Staff General Research Papers Archive 10599, Iowa State University, Department of Economics.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    public economics ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:unm:umamer:1998019. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Leonne Portz). General contact details of provider: http://edirc.repec.org/data/meritnl.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.